How underwriters calculate DTI, which debts count, and the fastest levers to move it before you apply.
Debt-to-income is monthly debt payments divided by gross monthly income. It is the single most common reason a file gets tight, and the easiest to improve deliberately.
What counts and what does not
Underwriting counts minimum payments reported on credit, plus the proposed housing payment. It ignores utilities, groceries, insurance you pay out of pocket, and phone bills.
- Counts: cards (minimum), auto, student loans, personal loans, alimony/child support, new PITI
- Ignores: utilities, food, streaming, 401k contributions
- Judgment calls: co-signed loans, installment debt with under ten payments left
Levers that move fast
Paying a card to zero removes its minimum payment entirely — a far bigger DTI move than the same dollars applied to a mortgage down payment. Restructuring a student loan or paying off a short-term auto note can also swing an approval. Combine with the credit tactics here.
Test it before you commit
Use the affordability calculator to see how a payment lands, then send me your numbers and I'll tell you which single payoff does the most for your approval.
Programs mentioned
- Home Purchase
Buy with a plan, not a guess.
- FHA Loans
Flexible credit, low down payment.
Keep reading
- How a Mortgage Closes in 15 Days: The Behind-the-Scenes Timeline
A day-by-day view of what happens between application and signing — and the three things that cause every delay.
- Self-Employed and Buying: How Underwriters Read Your Income
Write-offs that save you taxes can shrink your qualifying income. Here's how to plan two years ahead instead of scrambling.
- The Appraisal: What It Is, What Happens If It Comes In Low
An appraisal protects the lender, not your feelings about the house. Here's how to prepare and how to respond to a low number.
- The First-Time Buyer Roadmap: Nine Steps From Curious to Closed
Every step from your first budget conversation to the day you get keys — including what happens behind the scenes while you wait.